Correlation Between Loctek Ergonomic and Hubeiyichang Transportation
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Loctek Ergonomic and Hubeiyichang Transportation and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Loctek Ergonomic with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Hubeiyichang Transportation.
Diversification Opportunities for Loctek Ergonomic and Hubeiyichang Transportation
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Hubeiyichang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Loctek Ergonomic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Loctek Ergonomic Technology are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Hubeiyichang Transportation
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.79 times more return on investment than Hubeiyichang Transportation. However, Loctek Ergonomic is 1.79 times more volatile than Hubeiyichang Transportation Group. It trades about 0.19 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.26 per unit of risk. If you would invest 1,589 in Loctek Ergonomic Technology on September 5, 2024 and sell it today you would earn a total of 169.00 from holding Loctek Ergonomic Technology or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Hubeiyichang Transportation |
Loctek Ergonomic and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Hubeiyichang Transportation
The main advantage of trading using opposite Loctek Ergonomic and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Hubeiyichang Transportation can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Loctek Ergonomic vs. Nuode Investment Co | Loctek Ergonomic vs. Metro Investment Development | Loctek Ergonomic vs. Kunwu Jiuding Investment | Loctek Ergonomic vs. Glodon Software Co |
| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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